That marriage could create synergies of $246 million to $704 million, according to numbers run by Credit Suisse.

Credit Suisse analysts said there would be many benefits in putting the companies together.

“The main area of potential synergy we see is through the marketing business, where the combined entity could leverage total group production to generate greater profits through greater market share and arbitrage opportunities," the analysts said.

“We see the main upside potential within coal, copper and zinc. In total, we estimate post-tax synergies of $246 million to $704 million, or 2 per cent to 6 per cent of combined 2012 net income."

Analysts at Jeffries in London said if Glencore bought Xstrata with scrip, it could pay no premium and still do a deal that was not dilutive for shareholders.